aerpace Industries Limited has signed a Memorandum of Understanding with the Andhra Pradesh Economic Development Board to support the development of India’s first Drone City in the Kurnool region.
The project is part of Chief Minister N. Chandrababu Naidu’s plan to position the State as a national hub for drone manufacturing, testing, and advanced mobility technologies. Naidu has promoted technology driven development, and the State government says the Drone City will create a structured ecosystem for research and production.
State’s Drone City roadmap
Speaking about the initiative, the Chief Minister stated the potential of drones in national development.
Additionally, aerpace executive Ravi Soni said: “India’s First Drone City represents a landmark opportunity for the nation to build sovereign capability in aerospace, defence, and unmanned systems. We are honoured to be part of this initiative and remain committed to contributing meaningfully to India’s innovation landscape.”
The MoU allows aerpace is one of companies for developing India’s to align its long term plans with the State’s Drone City roadmap. The company held several rounds of technical discussions with the government earlier this year before receiving approval.
What does the MoU entails?
Under the agreement, aerpace will work with APEDB on setting up a drone manufacturing and testing facility, supporting defence UAV and logistics drone ecosystems, and contributing to research, training, and component development. The partnership will also support aerpace’s defence and mobility verticals, including aerShield and aerWing.
The initiative is in line with the central government’s push for advanced manufacturing, a priority often underscored by Union Minister Piyush Goyal.
aerpace and the State government will now begin phased regulatory and infrastructure planning. Further updates will follow as work progresses.